The Kyoto Protocol was adopted in Kyoto, Japan, on 11 December 1997. Due to a complex
ratification process, it entered into force on 16 February 2005.

In short, the Kyoto Protocol is what “operationalizes” the Convention. It
commits industrialized countries to stabilize greenhouse gas emissions based on the
principles of the Convention. The Convention itself only encourages countries to do so.

KP, as it is referred to in short, sets binding emission reduction targets for 37 industrialized
countries and the European community in its first commitment period. Overall, these targets add up to
an average five per cent emissions reduction compared to 1990 levels over the five-year period
2008 to 2012 (the first commitment period).

KP was structured on the principles of the Convention. It only binds developed countries because it
recognizes that they are largely responsible for the current high levels of GHG emissions in the
atmosphere, which are the result of more than 150 years of industrial activity. KP places a heavier
burden on developed nations under its central principle: that of “common but differentiated
responsibility”.

In Doha, Qatar, on 8 December 2012, the Doha Amendment to the Kyoto Protocol was adopted.
This launched a second commitment period, starting on 1 January 2013 until 2020.

The architecture of the KP regime: What makes KP tick?

The Kyoto Protocol is made up of essential architecture that has been built and shaped over almost
two decades of experience, hard work and political will. The beating heart of KP is made up of:

Reporting and verification procedures;

Flexible market-based mechanisms, which in turn have
their own governance procedures; and

A compliance system.

So, two things make KP tick.

The first was binding emissions reduction commitments for
developed country parties. This meant the space to pollute was limited, and what is scarce and
essential commands a price. Greenhouse gas emissions— most prevalently carbon dioxide—
became a new commodity. KP now began to internalise what was now recognised as an unpriced
externality.

This leads us to the second, the flexible market mechanisms of
the KP, based on the trade of emissions permits. KP countries bound to targets have to meet them
largely through domestic action— that is, to reduce their emissions onshore. But they can meet
part of their targets through three "market-based mechanisms" that ideally encourage GHG
abatement to start where it is most cost-effective-- for example, in the developing world. Quite
simply, it does not matter where emissions are reduced, as long as they are removed from the
planet's atmosphere. This has the parallel benefits of stimulating green investment in developing
countries and of including the private sector in this endeavour to cut and hold steady GHG emissions
at a safe level. It also makes "leap-frogging" more economical-- that is, the possibility
to skip older, dirtier technology for newer, cleaner infrastructure and systems, with obvious
longer-term benefits.

KP has prompted governments to put in place legislation and policies to meet their commitments,
businesses to make climate-friendly investment decisions, and the formation of a carbon market.

The Kyoto Protocol compliance mechanism is designed to strengthen the Protocol's environmental
integrity, support the carbon market's credibility and ensure transparency of accounting by
Parties. Its objective is to facilitate, promote and enforce compliance with the commitments under
the Protocol. It is among the most comprehensive and rigorous systems of compliance for a
multilateral environmental agreement. A strong and effective compliance mechanism is key to the
success of the implementation of the Protocol.

For more details on the Kyoto Protocol, its architecture and how it operates, click here.

For an overview of the relationship between the political, advisory and subsidiary bodies of the
UNFCCC, please click here.

TEXT OF THE KYOTO PROTOCOL

PDFs in the six official languages of the United Nations. Click to download.

The Clean Development Mechanism allows emission-reduction projects in
developing countries to earn certified emission reduction (CER) credits, each equivalent to
one tonne of CO2. CERs can be traded, sold, and used by industrialized countries to a meet a part of
their emission reduction targets under the Kyoto Protocol. For more information on the CDM, see the
CDM website.

Joint Implementation allows industrialized countries with targets under
KP to carry out emission-reduction projects in other industrialized country for
credits. These are Emission Reduction Units, also equivalent to 1 tonne of CO2. These are
converted from Assigned Amount Units (AAUs) and issued by the host country of the project. For more
information on the JI, see the JI website.